2018 (2) TMI 1423 - AT - Customs

Rectification of mistake - case of appellant is that the ground was taken up in appeal but the Tribunal has not given any findings on the subject - Held that - At the time of passing the Final Order, the Tribunal had occasion to hear all connected parties and considered the entire record of the case. After such careful consideration the Tribunal has upheld the penalties imposed on M/s MAX Shipping & Forwarding Pvt. Ltd. as well as the Operational and Managing Directors. every sentence or words or argument order. Under the garb of rectification, a fresh order cannot be passed by the Tribunal. Rectification of Mistake application is misuse of judicial process, and the same has no merit - ROM Application dismissed.

Summary

Issues:
Rectification of mistakes in Final Order regarding penalties upheld on applicants.

Analysis:
The Miscellaneous Appeals were filed against the Final Order upholding penalties imposed on the applicants. The Tribunal did not discuss a main argument raised by the appellants regarding the denial of cross-examination of a witness by the adjudicating authority. The appellants contended that despite the Tribunal's observation that the investigation did not pinpoint where and how the substitution of containers occurred, a substantial penalty was imposed on the shipping company and its executives. The appellants cited relevant case laws emphasizing the importance of cross-examination of witnesses in such matters.

The Revenue justified the penalties imposed, stating that the shipping company failed to safely transport customs cleared containers to the port. The Tribunal, after careful consideration of the case record and hearing all parties, upheld the penalties on the shipping company and its directors. The Tribunal highlighted that the cumulative effect of arguments and evidence must be considered, as per legal precedents like CIT Vs. Karam C Thapar and Raas Bihari Bansal Vs. CIT.

Regarding the rectification of mistakes, the Tribunal cited legal principles from various cases to emphasize that a fresh order cannot be passed under the guise of rectification. The Tribunal referred to the decision in Assistant Commissioner Income Tax V/s Saurashtra Stock Exchange, outlining the criteria for identifying errors apparent on the face of the record. Ultimately, the Tribunal concluded that the Rectification of Mistake application was a misuse of the judicial process and lacked merit, leading to its dismissal.

In conclusion, the Tribunal dismissed the Rectification of Mistake application, emphasizing that the totality of facts and circumstances did not warrant rectification. The order was pronounced in open court on 23.01.2018.